Financial Management

Working capital management involves investment and financing decisions related to current assets and noncurrent asset.

• True

• False

The goal of managing working capital management, such an inventory, should minimize the opportunity cost of capital.

• True

• False

Pertains into planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.

(a)  

The process by which a business arranges its prices and cost structure to achieve the highest possible profit. The central goal of the organization is to increase its profits.

(a)  

These are placements with holding period.

(a)  

Increase the amount of short-term borrowing would increase risk.

           

• True

• False

Trade terms is one of the factors used in credit policy administration.

• True

• False

Typically, an individual proprietor originally finances the company by using his or her personal savings, supplemented by bank or governmental loans.

(a)  

Depending on the industry, credit policy can vary from being crucial to being irrelevant.

• True

• False

A contract of two or more persons who bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves.

(a)